Deal help - 8 units, first timer

[Corey B.]

Small town NC. Building from 1940s, divvied up into 8 apts - four 2/1, four 1/1. 7 are already rented. list price is $95K, but hoping to get for less. Local Bank will do 75% @ 5.5%, 15 year amort. w 5 year balloon, roughly $650/month payment.

Rents on 2br are 375, 1 br is 350, so about $2600 income monthly now but closer to $2800-2900 with all filled. 

Maintenance I'm sure would be brutal but no matter the numbers I run, everything looks good about this, even if it's low $ per door. Main concern is the area and exit strategy - the town is small, rural, and not growing. 

Advice welcome!

[Mindy Jensen]

I know exactly nothing about the NC market, so take this with a grain of salt. But if the town is small, rural and not growing, where will your renters come from? Take a long, hard look at the rental history. Just because 7 are rented now doesn't mean 8 will ever all be rented.

Is there a lot of deferred maintenance? Who owns it? If it is bank owned, make the lowest offer you can possibly justify. If it is owned by a person, you may have to adjust upward. Good luck!